At The Home Ownership Center, we commonly hear these questions about purchasing a home. These answers work for most of our customers, but your case may be different. We suggest you talk with a loan officer to get more personalized ideas and suggestions.



How much money do I need for a down payment?

For a Freddie Mac Loan, you need five percent of the purchase price for a down payment. At least some of this money (two percent of the total purchase price) needs to come from you. Three percent can come from a gift you receive or from down payment assistance. The Home Ownership Center may have a down payment assistance option to help you.

So if you're buying a home for $100,000, you will need to put $5,000 down. Of this, at least $2,000 needs to come from your own savings. The amount you borrow will be $95,000.


What if I don't have very good credit?

When it comes to credit, lots of people have worries. The Home Ownership Center can get a copy of your credit report and review it with you. There may be things you can do immediately to improve your credit and your chance of qualifying for a loan. Or you may need to make a plan to repair your credit over a couple of years. The Home Ownership Center can help you do this.

Either way, too many people let fears about credit stand in their way of purchasing a home they truly want. If you take control of the issue by getting educated and making a plan, you'll feel better and be one step closer to owning a home.


How do I choose a neighborhood?

Some people are starting from scratch when it comes to choosing a home and a neighborhood and some have an idea already of where they'd like to live.

Make a list of criteria, things you'd like your new neighborhood to have. Then figure out which of these things are priorities for you. For example, you may want your new neighborhood to be close to a library and a park. But if you could only be close to one of those, which would be more important? Check out cincinnatihome.org for great information on all Cincinnati neighborhoods.


Do I need a real estate broker?

A real estate broker is someone who helps you find homes to look at and may offer additional guidance through the process. You don't have to use one, but many people find it helpful to have someone who can give them ideas about available properties and help make appointments.

In most cases, you do not pay a fee to the real estate broker. He or she is paid a commission from the sellers of the house after you purchase it, as is the broker who helped them sell the house if they used one.


Do I get the loan first or sign a contract to buy the house first?

When you go to buy your house, you might feel like a lot is happening at once. You can sign a contract to purchase a home before you have been approved for a loan. Generally what will happen is the seller will give you a certain number of days to get financing for the purchase. If you aren't able to do so, the contract is void.

What you can do before you sign the contract is get pre-qualified for a certain amount, meaning the lender has already reviewed your credit, employment information, and assets and debts and believes you will qualify for a loan of a certain amount. This process does not guarantee you will get the loan you want, but it gives both you and the seller a pretty good idea of what to expect. The Home Ownership Center can pre-qualify you.


How do I know if the home has major problems?

A lender will require you to have the home you want to purchase inspected by a professional. You are responsible for hiring this person and setting up the inspection. You should plan to walk through the house with the inspector and review his or her report point by point.

If there are major problems with the home, the lender may not approve you to purchase it, or you may have to renegotiate your purchase contract. There may be things that aren't so severe that they will interfere with your ability to purchase the home, you'll just want to be aware of them so you can do smart maintenance down the road. The Home Ownership Center has professional construction consultants on staff to help you through this process.


How long will it be until I can move into my new home?

The answer to this question is different for everybody. Factors that will affect how soon you can move in include how much time it takes you to agree on a purchase contract and the length of time it takes to get financing. Most significantly though, it will depend on how long it takes the current owners to move out. This item will be part of what is negotiated in your purchase contract.

welcome • buying a home • fixing up a home
free classes • ideas and resources • contact us